11 Flashcards
The whaling industry has hunted some species of whales nearly to extinction. Cattle, however, continue to thrive on farm throughout the world. Which of the following is the major reason for this difference between title and wales?
Whales are common resource and cattle are private property
Which one of the following is a reason that more that are occurs along highways the new private driveways?
Highways are a common resource
To which type of group do flood control dams belong to?
Public, private, club, or common resources
It’s a public good
Which one of the following is the best example of a tragedy of the commons?
A) The free rider problem
B) The Canadian day fireworks display
C) environmental degradation
D). Municipal police service
C
Which one of the following describes a good that is neither rival in consumption or excludable?
It’s a public good
The free rider problem is associated with what and as a consequence of their consumption being what
Public goods, nonexcludable
Which of the following statements can be correctly made about public goods?
A) it cost nothing to produce
B) Basic research yields benefits that cannot be measured in dollars
C) Basic research provides long-term but not short-term benefits
D) Basic research produces benefits to society as a whole, including those who do not pay for it
D
The mid level estimate of the value of a statistical life in Canada is $5.8 million. What is the benefit derived from the installation of a traffic light if it reduces the risk of a fatality accident by 0.5% point?
$29,000
Which one of the following refers to the provision of an education in a public school?
A) it is excludable and rival in consumption
B) it is nonexcludable but rival in consumption
C) it is excludable but non-rival in consumption
D) it is nonexcludable and non-rival in consumption
A
Suppose that the law requiring motorcycle riders to wear helmets reduces the probability of a fatality motorcycle accident from 0.5 to 0.3% of the lifetime of the writer. Suppose also that the cost of a lifetime ownership of the helmet is $7000. It is efficient for the government to require writers to wear helmets if the value of human life is
A) $1 million or more
B) $2 million or more
C). $3 million or more
D) 3.5 million or more
D
3.5 million or more
3,500,000 x .2% = 7,000
Which one of the following is an example of the tragedy of the commons?
A) A crime is committed in a public place
B) A common resource becomes rival in consumption
C) law-enforcement in public places is enhanced
D) property rights are ignored
B
Which one of the following explains why cost-benefit analysis is difficult?
Analysis do not typically observed prices when evaluating the benefits of a public good
What type of good is a Wi-Fi at airport terminals
It is non-rival in consumption because additional viewer does not reduce the strength of signal received by other viewers
It is nonexcludable because anyone with an Internet connection can receive the signal without paying
Therefore this is a public good
What type of good is congested city streets
This good is rival in consumption because additional users impose cost on other drivers by increasing the congestion
It is nonexcludable because it would be very difficult to charge tolls on city streets with virtually unlimited access
Therefore this is a common resource that tends to be over consumed
What type of good is a poem
This good is non-rival in consumption because many people can enjoy the same Poem at the same time
It is nonexcludable because users can read the poem or even memorize it and enjoy it without paying for it
Therefore this is a public good
What type of good is general medical research on the relationship between lifestyle and obesity
Consumption is non-rival in consumption because the same research can benefit one person or 1 billion people simultaneously
Is also nonexcludable because once knowledge is gained, it is virtually impossible to keep it away from people who do not pay for it
Therefore this is a public good
What type of good is a congested city park
This good is rival in consumption because of the crowding. More users clearly will detract from the benefits received by existing users
This good is excludable because it is very easy to admit one of those who buys an admission n ticket
Therefore this is a private good even though it’s publicly provided
What type of good is an uncongested private swimming pool
This good is non-rival in consumption because it is not crowded. As long as it is not crowded, additional swimmers do not impose cost another users.
It is also excludable, not because it is privately owned, but because it is easy to require the purchase of a ticket for admission.
Therefore this would be considered a club good even though it is privately owned
Give an example of a private good and explain why it’s private
Example; diet Pepsi
My consumption of it prevents other people from consuming it meaning it is rival.
Those who do not pay for the Pepsi can’t have the pet see this is excludable
Give an example of the club good and explain why it’s a club good
I nearly empty theater. (or nearly empty plane)?
Because it’s not full it’s not crowded meaning it’s not rival
However you still have to buy a ticket therefore it is excludable if you don’t buy ticket you can’t be there
Give an example of a common resource and explain why it’s a common resource
Wild mushrooms. Or think of wild raspberries
People who pick wild mushrooms 10 to pick all that they can find because they know that if they leave any to regenerate, someone else will come along and pick them anyways. The picker would be more likely to do a controlled harvest if they could keep the mushroom patch to themselves
Give an example of the public good and explain why it’s probably good
Medical research
What’s the knowledge has been acquired and people know about it it can be enjoyed by everyone it would be difficult to prevent people from knowing about it
Which one of the following are sidewalks an example of?
A) public good
B) private good
C) common resource
D) Club good
A
